Category Archives: spending out of control

No wonder Obama won the election since it pays more to be on welfare than to work in the USA!!!!

No wonder Obama won the election since it pays more to be on welfare than to work in the USA!!!!

About two years ago, I shared a map put together by a pro-statism organization that supposedly showed that welfare benefits were very miserly and not sufficiently generous to lift people out of poverty.

My gut instinct was to reject the findings. As I wrote at the time:

The poverty line is set considerably above a level that would indicate material deprivation…far above the average level of income in most nations of the world. …Welfare checks are just one of many forms of redistribution, and the data used to create the map do not count food stamps, Medicaid, housing subsidies and a plethora of other means-tested programs.

My skepticism was further augmented when I ran across an amazing chartshowing that it made more sense to live off the government in Pennsylvania rather than earn more income.

It turns out that I was right to be skeptical. My colleagues at the Cato Institute have just released a detailed study calculating the amount of handouts available in each state. They then investigated whether the level of redistribution was so high that people might decide it didn’t make sense to be productive members of society.

You probably won’t be surprised to learn that it’s better to live off the government in most states.

Welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job, and the balance between welfare and work may actually have grown worse in recent years. The current welfare system provides such a high level of benefits that it acts as a disincentive for work. Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit, and in 13 states it pays more than $15 per hour.

Here are some of the details from the study, which used the example of a mother and two children.

…the federal government currently funds 126 separate programs targeted toward low-income people, 72 of which provide either cash or in-kind benefits to individuals. …no individual or family receives benefits from all 72 programs, but many recipients do receive aid from a number of the programs at any given time. …this study seeks to determine the approximate level of benefits that a typical welfare family, consisting of a single mother with two children, might receive, and to compare those benefits with the wages that a recipient would need to earn in order to take home an equivalent income.

What shocked me the most were a couple of tables showing how living off the taxpayers is a pretty good deal.

The first table shows how much a household would have to earn – before tax – to have the same lifestyle that is available from the welfare system. The study also looks at median salary in each state and shows that eight states actually provide handouts that are greater than that amount!

Redistribution Nation Worst 24

The study also reveals that handouts give recipients far more than is needed to reach the federal poverty level. Indeed, the panoply of benefits is so excessive in some places that recipients are pushed to more than twice what is needed to get out of poverty.

Redistribution Nation Poverty Rate

Or maybe it would be more accurate to state that handouts are so excessive that recipients are lured into dependency.

I’ll close with a couple of surprises from the study. I was shocked that Illinois and Maine both ranked among the least extravagant states. Maine “earned” third place in the Moocher Index, so I assumed they would be especially profligate. But I guess having a lot of people on welfare doesn’t necessarily mean that they’re getting a lot of money.

And Illinois has veered far to the left on fiscal policy in recent years, so I assumed politicians were giving out lots of goodies. But apparently bureaucrats are first in line for handouts and that reduces the amount of loot available for other groups.

On the other hand, I didn’t expect to find New Hampshire being about as profligate as Vermont.

Most of the other states are where you would expect them to be. Fiscal hell-holes like New York and California redistribute money like crazy, while zero-income tax states such as Texas, Florida, and Tennessee are comparatively frugal.

P.S. Here’s a map showing which states have the most food stamp dependency.

P.P.S. Let’s not forget that the poverty rate was falling steadily before the federal government declared a “War on Poverty.”

P.P.P.S. If you’re thinking about moving, you may want to avoid “death spiral states.”

P.P.P.P.S. The U.K. welfare system also makes work unattractive compared to
living off taxpayers.

Other than the famous “riding in the wagon” set, the most-viewed cartoon on this blog is this one about Obama and self-imposed headwinds.

Now we have our first cartoon of the Christmas season!

This isn’t the theme of government as Santa Claus. It is government as Santa Claus.

And where does this approach lead? Well, this Eric Allie cartoon provides a road map.

You can see some previous Allie cartoons here , here, here, here, and here.

Related posts:

Obama’s welfare state creates dependency (be more prompt with tax return next year we almost ran out of welfare money)

President Obama has really cranked up the welfare state (Bush really never slowed it down either) and I think this cartoon below is really appropriate. A Real-Life Example of How Government Handouts Create Life-Sapping Dependency February 7, 2013 by Dan Mitchell Remember Julia, the mythical moocher created by the Obama campaign to show the joys of […]

Welfare became more generous under Bush and Obama, and as a result massively altered employment patterns in the labor market

Uploaded by HeritageFoundation on Jun 29, 2010 If America does not get welfare reform under control, it will bankrupt America. But the Heritage Foundation’s Robert Rector has a five-step plan to reform welfare while protecting our most vulnerable. _________ There are too many incentives to stay on welfare and as a result the welfare rolls […]

President Obama responds to Heritage Foundation critics on welfare reform waivers

Is President Obama gutting the welfare reform that Bill Clinton signed into law? Morning Bell: Obama Denies Gutting Welfare Reform Amy Payne August 8, 2012 at 9:15 am The Obama Administration came out swinging against its critics on welfare reform yesterday, with Press Secretary Jay Carney saying the charge that the Administration gutted the successful […]

Why did Obama stop the Welfare Reform that Clinton put in?

Thomas Sowell If the welfare reform law was successful then why change it? Wasn’t Bill Clinton the president that signed into law? Obama Guts Welfare Reform Robert Rector and Kiki Bradley July 12, 2012 at 4:10 pm Today, the Obama Department of Health and Human Services (HHS) released an official policy directive rewriting the welfare […]

Bill Clinton’s welfare reform undone by Obama

.  When the Republicans took over Congress in 1994 they were able to work with President Clinton and get Welfare reform passed which Clinton signed. However, since President Obama got in office he has been trying to stimulate the economy and he abandoned welfare reform. By Doug Mills, APPresident Ronald Reagan after delivering a speech […]

Bill Clinton’s welfare reform undone by Obama

.  When the Republicans took over Congress in 1994 they were able to work with President Clinton and get Welfare reform passed which Clinton signed. However, since President Obama got in office he has been trying to stimulate the economy and he abandoned welfare reform. By Doug Mills, APPresident Ronald Reagan after delivering a speech […]

Obama’s position on tax policy made simple (Cartoon)

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Obama’s position on tax policy made simple below: Obama’s Understanding of Taxation, Captured by a Cartoon July 11, 2011 […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 28

I have put up lots of cartoon’s from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Here is another one. Sometimes it is so crazy that you just have to laugh a little. What’s […]

Is Obama acting like a dictator with his recent actions regarding the Obamacare Program?

_________ Is Obama acting like a dictator with his recent actions regarding the Obamacare Program? The Arbitrary Diktats of Generalissimo Obama August 16, 2013 by Dan Mitchell There’s an old joke that the definition of quandary is when your mother-in-law drives off a cliff in your new car. But since I’m not married, I can’t use […]

Obama is a spending addict (Cartoons)

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Obama is a spending addict. The Unintentional Humor of America’s Spender-in-Chief January 16, 2013 by Dan Mitchell Let me […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 27

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Changing the words does not excuse President Obama for spending  our children’s future away with these excessive budget […]

Open letter to President Obama (Part 358)

Funding Government by the Minute Published on Mar 28, 2012 At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy […]

Obamacare will grow government like nothing ever has in our country’s history!!!

15 Stupid government programs that will make you want to vomit!!!!

15 Stupid government programs that will make you want to vomit!!!!

August 20, 2013 at 6:50 am

In 2013, federal spending approached $3.5 trillion. Now that’s hard to wrap your brain around. It’s about $27,700 for every American household.

All across America, families balance their budgets, rein in spending, and pay down their debts. If Americans can do it, why can’t the federal government?

Instead, they’re wasting your taxpayer dollars on programs like the ones below. We’ve compiled just 15 examples of the ridiculous spending that is driving America toward a $17 trillion national debt.

WastefulSpending_1

1. GATHERING DUST: The Transportation Security Administration let 5,700 pieces of unused security equipment worth $184 million sit in storage in a Dallas, Texas, warehouse, which costs $3.5 million annually to lease and manage. Taxpayers lost another $23 million in depreciation costs, because most of the 472 carry-on baggage screening machines had been housed there for nine months or more. That’s a lot of money!

 

wastefulspending_2

2. DANCE THE NIGHT AWAY: The National Science Foundation used part of a half-million dollar grant to develop a video game that simulates a high school prom.

 

wastefulspending_3

3. BIRD IS THE WORD: The U.S. Air Force Office of Scientific Research spent $300,000 on a study that concluded the first bird on Earth probably had black feathers.

 

WastefulSpending_4

4. CAFÉ CAR: Taxpayer-funded Amtrak recovered only 44 cents of every dollar of its food and beverage costs on long-distance routes, which already annually lose money.

 

WastefulSpending_5

5. SO MUCH FOR ROBOT NANNIES: The Office of Naval Research spent $450,000 on a study that determined unintelligent robots do not have the ability to maintain a baby’s attention.

 

wastefulspending_6

6. RENOVATIONS ON A PRESIDENTIAL SCALE: The Oval Office is getting a facelift. While it’s out of commission, the President will need a pseudo-Oval Office, right? $376 million will go to an Oval Office renovation and plans to construct a second office for the President to use during the renovation.

 

wastefulspending_7

7. FELLAS, GET YOUR GUNS: Do you think this guy appears taller, stronger, and manlier? The U.S. Air Force Office of Scientific Research spent $681,387 on a study to confirm that he does—when he’s carrying a firearm.

 

wastefulspending_8

8. THAT’S ILLOGICAL, CAPTAIN: The Internal Revenue Service spent $4.1 million on a lavish conference in 2010 for 2,609 of its employees in Anaheim, California. Expenses included $50,000 for line-dancing and “Star Trek” parody videos, $135,350 for outside speakers, $64,000 in conference “swag” for the employees, plus free meals, cocktails, and hotel suite upgrades.

 

double dipping Social Security

9. DOUBLE DIPPERS: In 2010, 117,000 people who double-dipped into Social Security’s disability insurance program and the federal unemployment insurance program received $850 million in cash benefits.

 

WastefulSpending_10

10. GET IN THE HOLE! Did you know that golfers who imagine that the hole is bigger boost their confidence and accuracy? Thanks to the National Science Foundation, Purdue University, and $350,000 in taxpayer money, now you do.

 

wastefulspending_11

11. MORE THAN POTATOES: In 2012, the U.S. Department of Agriculture spent $300,000 on activities promoting caviar produced in Idaho.

 

WastefulSpending_12

12. IT’S THE UNLIMITED ICE CREAM: The U.S. Department of Agriculture awarded a $149,992 grant to researchers at Fairleigh Dickinson University in New Jersey who are trying to eliminate the infamous “freshman 15” by studying college students’ on-campus dining selections.

 

WastefulSpending_13

13. GIRL POWER? A $100,000 grant from the National Endowment of the Arts funded a video game that depicts a female superhero sent to save planet Earth from climate changes allegedly caused by social issues that affect women.

Related posts:

President Obama and government spending (GSA Govt waste tip of iceberg)

I wish President Obama would try to cut spending instead of increasing spending and our debt. Two Very Good GSA Waste Cartoons April 21, 2012 by Dan Mitchell One of my first blog posts back in 2009 featured a column about the Social Security Administration squandering $750,000 on a “conference” at a fancy golf resort in […]

A suggestion to cut some wasteful spending out of the government Part 8 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 7 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

A suggestion to cut some wasteful spending out of the government Part 6 (includes editorial cartoon)

Funding Government by the Minute Published on Mar 28, 2012 At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy […]

A suggestion to cut some wasteful spending out of the government Part 5 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 4 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

A suggestion to cut some wasteful spending out of the government Part 3 (includes editorial cartoon)

What Can We Cut to Balance the Budget Published on Oct 16, 2012 Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) […]

A suggestion to cut some wasteful spending out of the government Part 2 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 1 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

Lots of wasteful spending by federal government

I wish the federal government would go back to spending less than 5% of GDP like they did the first 150 years of our country’s history. We could cut down on a lot of wasteful spending if we did that. Morning Bell: The Governing Class and Us Mike Brownfield April 19, 2012 at 8:57 am […]

We got to cut the fraud out of the Social Security Disability system!!!!!

Collapse of Social Security & Education w/Heritage Foundation President Edwin Feulner 08/30/2012

Published on Aug 30, 2012

Heritage Foundation President Dr. Edwin Feulner discusses the sad state of our education and Social Security systems. He also explains why The United States of America would continue to be the best country in the world.

With more than 700,000 paid supporters, The Heritage Foundation is the most prominent conservative think-tank in the world.

____

We got to cut the fraud out of the Social Security Disability system!!!!!

August 15, 2013 4:35PM

Social Security Disability Fraud in Puerto Rico

In 2011, the Wall Street Journal’s Daniel Paletta reported on the rapid growth in individuals applying for and receiving Social Security disability benefits. Paletta found that Puerto Rico had become a particularly easy place to obtain benefits. Officials with the Social Security Administration (SSA) absurdly claimed that nothing was amiss. 

It looks like the SSA is about to get some egg on its face. 

Yesterday, Paletta reported that federal investigators, including the FBI, raided doctors’ offices in Puerto Rico as part of a widening probe into disability fraud on the island. A doctor’s opinion that an individual is suffering from a disability is naturally quite helpful in convincing examiners and judges that benefits are warranted. Investigators are apparently looking into whether Puerto Rican doctors are being paid to document that applicants are disabled. From the article: 

In 2006, just 36% of initial applicants in Puerto Rico were awarded benefits. In December 2010, the award rate had jumped to 69%. By 2010, nine of the top 10 U.S. ZIP Codes for workers receiving disability benefits were on the island. 

At the time, SSA officials said the high number of recipients and the high award rate was due to the island’s weak economy and a lack of adequate health care for workers. 

The program is overseen by the Social Security Administration in Baltimore, but each state and territory is responsible for performing an initial screening to determine eligibility. Social Security officials said in 2011 that Puerto Rico had rigorous standards and a virtually nonexistent error rate. 

The characteristics of Puerto Rico’s beneficiaries differed from other areas. In addition to the large clusters in certain zip codes, federal data showed that 33.3% of Puerto Rican beneficiaries qualified because of “mood disorders,” a rate that is at least 10 percentage points higher than any U.S. state. 

Disability examiners and federal judges say mental disorders are harder to measure and often rely on medical opinions issued by doctors to make a determination. 

SSDI was designed as a way to provide benefits for people who can’t work because of mental or physical health problems, and Americans can qualify for benefits because of ailments ranging from severe back pain to terminal cancer. 

A lifetime of benefits, including access to Medicare, can cost the government about $300,000 a person. 

As I noted in my recent paper on the growing cost of Social Security Disability Insurance, the SSA’s inspector general says that “fraud is an inherent risk in SSA’s disability programs.” But as my paper explains, the problems with the program go way beyond outright fraud: 

Given the subjective and convoluted nature of determining SSDI eligibility, it’s likely that erroneous and unjustified payments are far larger in volume than just outright fraud. The huge, complex, and difficult-to-audit system is a perfect breeding ground for awarding and continuing benefits to people who shouldn’t be on the disability rolls.

Related posts:

We got to cut corporate welfare out of the budget too!!!

We got to cut corporate welfare out of the budget too!!! JULY 23, 2013 5:40PM Feds and the States Tag-Teaming on Corporate Welfare By TAD DEHAVEN In a recent op-ed for the Indianapolis Star I discussed the symbiotic relationship between federal and state government when it comes to doling out corporate welfare subsidies. The focus was primarily on Indiana, but […]

The Moocher Index is a measure of which state has the highest level of welfare dependency!!!

The Moocher Index is a measure of which state has the highest level of welfare dependency!!! Which State Has the Most Self-Reliant People? July 24, 2013 by Dan Mitchell Back in 2010, I put together a “Moocher Index” as a rough measure of which states had the highest levels of welfare dependency after adjusting for poverty […]

Obama’s welfare state creates dependency (be more prompt with tax return next year we almost ran out of welfare money)

President Obama has really cranked up the welfare state (Bush really never slowed it down either) and I think this cartoon below is really appropriate. A Real-Life Example of How Government Handouts Create Life-Sapping Dependency February 7, 2013 by Dan Mitchell Remember Julia, the mythical moocher created by the Obama campaign to show the joys of […]

Thomas Sowell and Milton Friedman’s answer to the welfare problem in 1980 will still work today

_____________________________________ Milton Friedman On Charlie Rose (Part One) The late Milton Friedman discusses economics and otherwise with Charlie Rose. _________________________________________ Milton Friedman: Life and ideas – Part 01 Milton Friedman: Life and ideas A brief biography of Milton Friedman _____________________________________ Stossel – “Free to Choose” (Milton Friedman) 1/6 6-10-10. pt.1 of 6. Stossel discusses Milton […]

Milton Friedman had a solution to today’s welfare mentality!!!

  I have written about the tremendous increase in the food stamp program the last 9 years before and that means that both President Obama and Bush were guilty of not trying to slow down it’s growth. Furthermore, Republicans have been some of the biggest supporters of the food stamp program. Milton Friedman had a […]

Welfare state may drag England down the tubes!!!!

Welfare state may drag England down the tubes!!!! Very Funny but Very Un-PC British Video on Welfare and Immigration May 19, 2013 by Dan Mitchell I’ve shared this bit of political incorrect terrorism humor from England, as well asthis somewhat un-PC bit of tax humor. But perhaps motivated by the scandal of giving welfare to terrorists, this new video is […]

Milton Friedman did not favor free immigration with existing welfare state in USA

Milton Friedman did not favor free immigration with existing welfare state in USA Milton Friedman – Illegal Immigration – PT 2 Uploaded on Dec 18, 2009 (2 of 2) Professor Friedman fields a question on the dynamics of illegal immigration ________________ Heritage Responds to Senator Rubio on Immigration Study Amy Payne May 8, 2013 at […]

We got to stop encouraging people to stay on welfare

  We got to stop encouraging people to stay on welfare. How the Welfare State Erodes Social Capital, as Illustrated by a Chuck Asay Cartoon April 26, 2013 by Dan Mitchell I’m a big fan of Chuck Asay’s political cartoons. My favorite is his nothing-left-to-steal masterpiece. And his tractor cartoon and his regime-uncertainty cartoon are brilliant indictments […]

What does the welfare state do to people?

I have posted stories on welfare before and here is another one. Another Horrifying and Depressing Look at the Human Cost of the Welfare State March 22, 2013 by Dan Mitchell When we think of Julia, the mythical moocher created by the Obama campaign, our first instinct is probably to grab our wallets and purses. After […]

Founders Fathers were against welfare state

Why are we spending more and more on welfare every year?  What would the Founding Fathers have to say about this if they were still here today? We will look at that in a little bit. We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back […]

More Government Stimulus is not the answer but less Government intervention is!!!

More Government Stimulus is not the answer but less Government intervention is!!!

Americans Don’t Need More of Obama’s Stimulus Spending

August 9, 2013 at 3:16 pm

Newscom

Newscom

In a series of campaign-style speeches, President Obama has laid out recycled economic proposals, which include yet another tax increase to pay for $50 billion in new infrastructure stimulus spending. This after Washington already spent $70.6 billion under the American Recovery and Reinvestment Act in 2009. The trouble is that Washington can’t afford more spending.

The President’s latest tax-and-spend proposals also ignore the effects of that first stimulus. Setting that embarrassing lack of “shovel-ready” jobs aside, researchers at the Mercatus Center at George Mason University found that “stimulus dollars created more job shifting than actual new jobs.” Economist Garett Jones reported that as a result of the stimulus, “less than half of the workers came from the unemployment line, and instead were hired away from other firms and businesses.”

A case in point is the first “shovel-ready” project funded by the stimulus: the resurfacing of Route 650 in Maryland. Instead of creating new jobs, however, the stimulus money Maryland received was used to pay for the salaries of full-time employees.

Maryland Governor Martin O’Malley (D) cut the state’s infrastructure budget because of the $771 million gained in stimulus funds. He also raided the state’s Transportation Trust Fund, which is intended to pay for highway repairs, diverting $861 million over three years to help balance the state budget. According to Reason, “[E]ven with the stimulus, [Maryland] state spending on transit infrastructure has seen a net decrease of $90 million since 2009.”

The situation in Maryland was repeated across the country: “Stimulus dollars were used to cover general expenses rather than activating idle resources.” Here are some examples:

  • Red tape delays fire station construction. Though the city of San Antonio was set to fully fund the construction of two new fire stations with its own money and had already hired a private contractor, the construction was delayed when the city received federal stimulus funds, increasing the cost of construction by $7.3 million. After the federal government got involved, the city found itself unexpectedly navigating complicated and expensive federal regulations, requiring environmental and historical considerations—all delaying the project significantly. The private builder lost its contract, laying off employees in the process.
  • New buses without riders. The Winter Haven Area Transit Authority (WHAT) in Florida purchased five new buses using $2.4 million in federal stimulus funds. The new buses were additions to a transit system that serves an average of two to three riders per hour, according to WHAT. Polk County commissioner Randy Wilkinson observed that WHAT spends more on the bus service than if the agency hired a cab for each rider.
  • The Gig to Nowhere. The Electric Power Board (EPB) received $111.6 million in federal stimulus funds for a local smart grid in Chattanooga, Tennessee, that was supposed to increase energy efficiency and help avoid power outages. It was built with fiber optics instead of more cost-effective wireless technology. The Times Free Press notes that “this decision was supposed to allow EPB to provide the fastest Internet service in the Western Hemisphere, a gigabit-per-second Internet speed that would send tech companies and web entrepreneurs stampeding to Chattanooga in droves.” Instead, the Times reports that “companies hoping to utilize the Gig to Nowhere are quoted monthly billing costs that make the service unfeasible. As a result…[a]lmost no economic development whatsoever has resulted from the gig.”

Stimulus spending—whether on education, manufacturing, or, in this case, infrastructure—did not result in overall economic growth. It only worsened budget deficits and removed resources from the private sector in the near term. Obama Administration approval of the Keystone XL pipeline is one way the federal government could help the economy. However, the types of projects funded by the 2009 stimulus bill and that Obama now proposes to fund are state and local responsibilities.

Nicolas Vega is currently a member of the Young Leaders Program at The Heritage Foundation.

Related posts:

Do we need another stimulus?

President Obama wants to do another stimulus, but will that work? A Perfect Holiday Album for the Keynesians on Your Christmas List December 6, 2012 by Dan Mitchell I’m understandably partial to my video debunking Keynesian economics, and I think this Econ 101 video from the Center for Freedom and Prosperity does a great job of […]

Economist Antony Davies’ video “Does Stimulus Spending Work?” (includes editorial cartoon)

  Stimulus spending down in 2009 did not help at all. Does Stimulus Spending Work? After the housing bubble burst, the Bush and Obama administrations turned to stimulus in an effort to “create jobs.” Does such spending lead to economic improvement? Prof. Antony Davies examines the data to see how increases in federal spending relate […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy (stimulus cartoon)

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Classic Cartoon on So-Called Stimulus Is Amusing and Economically Accurate February 6, 2012 by Dan Mitchell People often ask […]

Obama’s stimulus failed according to his own figures

The president wants to raise taxes on the job creators and he thinks he can get more jobs that way. Dan Mitchell brings up some great points about lowering government spending will help us not become Europe. Using the White House’s Own Benchmark, I Give Obamanomics an F on CNBC August 7, 2012 by Dan Mitchell […]

Videos by Cato Institute on failed stimulus plans

In this post I have gathered several videos from the Cato Institute concerning the subject of failed stimulus plans. _____ Government Spending Doesn’t Create Jobs Uploaded by catoinstitutevideo on Sep 7, 2011 Share this on Facebook: http://on.fb.me/qnjkn9 Tweet it: http://tiny.cc/o9v9t In the debate of job creation and how best to pursue it as a policy […]

The stimulus program did not help, but getting government out of the way would!!!!

Government Must Cut Spending Uploaded by HeritageFoundation on Dec 2, 2010 The government can cut roughly $343 billion from the federal budget and they can do so immediately. __________ The stimulus program did not help, but getting government out of the way would!!!! Take a look at this great article that goes over several examples […]

Videos by Cato Institute on failed stimulus plans

In this post I have gathered several videos from the Cato Institute concerning the subject of failed stimulus plans. _____ Government Spending Doesn’t Create Jobs Uploaded by catoinstitutevideo on Sep 7, 2011 Share this on Facebook: http://on.fb.me/qnjkn9 Tweet it: http://tiny.cc/o9v9t In the debate of job creation and how best to pursue it as a policy […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 28

I have put up lots of cartoon’s from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Here is another one.

Sometimes it is so crazy that you just have to laugh a little.

Using data from the Minneapolis Federal Reserve, I showed last week that job creation – depending on how one wants to measure the business cycle – is either the worst  or close to the worst for any period since World War II.

My argument is that Obama’s policies are impeding growth. Simply stated, higher tax rates, a heavier burden of government spending, and other forms of intervention are not exactly the right recipe for growth and prosperity.

But sometimes it’s easier to get that message across with a clever cartoon.

Cartoon Obamanomics Anchor

Payne’s cartoon has a similar theme to this Ramirez cartoon, which is the fourth-most-viewed post in the history of my blog.

And here’s another Ramirez cartoon with the same message, and one of my favorite Chuck Asay cartoons also shows what happens when you impose a lot of burdens on the economy’s productive sector.

At some point, though, the public sector becomes so demanding that slow growth becomes no growth. Here’s a very clever Asay cartoon about what happens when you reach that tipping point.

P.S. I suspect it was meant as sarcasm and to nail Obama for blame-shifting, but the “Republican fiscal flux capacitor” does deserve some of the blame. Just look at these charts to see what happened the last time the GOP was in charge.

The self-inflicted economic crisis in Europe has generated some good humor, as you can see from these cartoons by Michael Ramirez and Chuck Asay.

But for pure laughter, I don’t think anything will ever match the hilarious “Europe According To…” maps that I posted last year.

That being said, this new cartoon by Robert Ariail ranks high on my list for European humor.

And if you need some more European-oriented laughs, I also recommend this photo-shopped image of “Merkozy” and this Hitler parody about the downgrade.

Related posts:

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 2

Max Brantley is wrong about Tom Cotton’s accusation concerning the rise of welfare spending under President Obama. Actually welfare spending has been increasing for the last 12 years and Obama did nothing during his first four years to slow down the rate of increase of welfare spending. Rachel Sheffield of the Heritage Foundation has noted: […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 1

  I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. I think Max Brantley of the Arkansas Times Blog was right to point out on 2-6-13 that Hillary […]

Great cartoon from Dan Mitchell’s blog on government moochers

I thought it was great when the Republican Congress and Bill Clinton put in welfare reform but now that has been done away with and no one has to work anymore it seems. In fact, over 40% of the USA is now on the government dole. What is going to happen when that figure gets over […]

Gun Control cartoon hits the internet

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“You-Didn’t-Build-That” comment pictured in cartoons!!!

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Funny cartoon from Dan Mitchell’s blog on Greece

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Obama on creating jobs!!!!(Funny Cartoon)

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Cartoon demonstrates that guns deter criminals

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Gun control posters from Dan Mitchell’s blog Part 2

I have put up lots of cartons and posters from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Amusing Gun Control Picture – Circa 1999 April 3, 2010 by Dan Mitchell Dug this gem out […]

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Gun control posters from Dan Mitchell’s blog Part 1

I have put up lots of cartons and posters from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. On 2-6-13 the Arkansas Times Blogger “Sound Policy” suggested,  “All churches that wish to allow concealed […]

Taking on Ark Times bloggers on the issue of “gun control” (Part 3) “Did Hitler advocate gun control?”

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Taking on Ark Times bloggers on the issue of “gun control” (Part 2) “Did Hitler advocate gun control?”

On 1-31-13 I posted on the Arkansas Times Blog the following: I like the poster of the lady holding the rifle and next to her are these words: I am compensating for being smaller and weaker than more violent criminals. __________ Then I gave a link to this poster below: On 1-31-13 also I posted […]

Taking from the rich and giving to the poor is no way to grow the economy and running up our national debt doesn’t help either (Cartoons)

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control.

Taking from the rich and giving to the poor is no way to grow the economy and running up our national debt doesn’t help either.

I shared a cartoon last Halloween that made fun of those who support class-warfare tax policy.

Now we have a related cartoon, featuring a stop at the White House.

Republicans will like the ghost’s comments, of course.

The next two cartoons are almost identical. We’ll start with this one from Michael Ramirez.

Ramirez is one of my favorite cartoonists, incidentally, and you can see more of his work here, here, here, here, here, here, here, here, here, here, herehereherehereherehere, and here.

Here’s a Gary Varvel cartoon with the exact same message.

Instead of great minds thinking alike, this is a case of great cartoonists thinking alike. Though they probably have great minds as well.

But I don’t want to make too many fawning comments since I would modify both of these cartoons so that the kids were looking at papers that said “Medicare” and “Social Security” instead of “debt.”

It’s always important to focus first and foremost on the disease of spending, after all, and not the symptom of red ink.

Last but not least, I can’t resist linking to this comedian’s video, which includes some very good economic insights about work incentives.

Sort of like this Wizard of Id parody featuring Obama.

Related posts:

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Max Brantley is wrong about Tom Cotton’s accusation concerning the rise of welfare spending under President Obama. Actually welfare spending has been increasing for the last 12 years and Obama did nothing during his first four years to slow down the rate of increase of welfare spending. Rachel Sheffield of the Heritage Foundation has noted: […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 1

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Great cartoon from Dan Mitchell’s blog on government moochers

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Gun Control cartoon hits the internet

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“You-Didn’t-Build-That” comment pictured in cartoons!!!

watch?v=llQUrko0Gqw] The federal government spends about 10% on roads and public goods but with the other money in the budget a lot of harm is done including excessive regulations on business. That makes Obama’s comment the other day look very silly. A Funny Look at Obama’s You-Didn’t-Build-That Comment July 28, 2012 by Dan Mitchell I made […]

Cartoons about Obama’s class warfare

I have written a lot about this in the past and sometimes you just have to sit back and laugh. Laughing at Obama’s Bumbling Class Warfare Agenda July 13, 2012 by Dan Mitchell We know that President Obama’s class-warfare agenda is bad economic policy. We know high tax rates undermine competitiveness. And we know tax increases […]

Cartoons on Obama’s budget math

Dan Mitchell Discussing Dishonest Budget Numbers with John Stossel Uploaded by danmitchellcato on Feb 11, 2012 No description available. ______________ Dan Mitchell of the Cato Institute has shown before how excessive spending at the federal level has increased in recent years. A Humorous Look at Obama’s Screwy Budget Math May 31, 2012 by Dan Mitchell I’ve […]

Funny cartoon from Dan Mitchell’s blog on Greece

Sometimes it is so crazy that you just have to laugh a little. The European Mess, Captured by a Cartoon June 22, 2012 by Dan Mitchell The self-inflicted economic crisis in Europe has generated some good humor, as you can see from these cartoons by Michael Ramirez and Chuck Asay. But for pure laughter, I don’t […]

Obama on creating jobs!!!!(Funny Cartoon)

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2 cartoons illustrate the fate of socialism from the Cato Institute

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Cartoon demonstrates that guns deter criminals

John Stossel report “Myth: Gun Control Reduces Crime Sheriff Tommy Robinson tried what he called “Robinson roulette” from 1980 to 1984 in Central Arkansas where he would put some of his men in some stores in the back room with guns and the number of robberies in stores sank. I got this from Dan Mitchell’s […]

Gun control posters from Dan Mitchell’s blog Part 2

I have put up lots of cartons and posters from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Amusing Gun Control Picture – Circa 1999 April 3, 2010 by Dan Mitchell Dug this gem out […]

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I have put up lots of cartons and posters from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. On 2-6-13 the Arkansas Times Blogger “Sound Policy” suggested,  “All churches that wish to allow concealed […]

Taking on Ark Times bloggers on the issue of “gun control” (Part 3) “Did Hitler advocate gun control?”

Gun Free Zones???? Stalin and gun control On 1-31-13 ”Arkie” on the Arkansas Times Blog the following: “Remember that the biggest gun control advocate was Hitler and every other tyrant that every lived.” Except that under Hitler, Germany liberalized its gun control laws. __________ After reading the link  from Wikipedia that Arkie provided then I responded: […]

Taking on Ark Times bloggers on the issue of “gun control” (Part 2) “Did Hitler advocate gun control?”

On 1-31-13 I posted on the Arkansas Times Blog the following: I like the poster of the lady holding the rifle and next to her are these words: I am compensating for being smaller and weaker than more violent criminals. __________ Then I gave a link to this poster below: On 1-31-13 also I posted […]

Welfare should not stand in the way of self-sufficiency but should encourage freedom from government dependence!!!

Fox News Follows California Beach Bum Living Off Food Stamps For Years

You Won’t Believe This Surfer Living the Food Stamps Dream

August 15, 2013 at 5:01 pm

This is Jason Greenslate’s typical day: “Wake up, go down to the beach, hang out with my friends, hit on some chicks, start drinking.” He also plays in a rock band. And he’s living off food stamps.

He has no income—he’s not interested in getting a job—and he’s eating on your tax dime: $200 a month of “free money,” as he puts. “All paid for by our wonderful tax dollars.” He stays with friends, family members, or girlfriends. “Why not?” he asks. He says he is “living the dream.”

Today, there are roughly 47 million Americans receiving food stamps. About 4 million of these individuals are “able-bodied adults without dependents.” In the past, to qualify for food stamps, these able-bodied adults had to work at least part time or participate in some type of work program to qualify for food stamps. If not, their benefits were limited to three months out of every 36 months. However, waivers issued by the U.S. Department of Agriculture have allowed states to suspend the work requirement the past few years. Between 2008 and 2010, the number of able-bodied adults on food stamps doubled from approximately 2 million to 4 million.

Of course, not all able-bodied food stamp recipients are like Jason, with no interest in working, and certainly a tough economy has meant fewer job opportunities.

Yet food stamps should be reformed to encourage work, even if that means preparing for work or simply looking for work.

As a result of the 1996 welfare reform, which instituted work requirements for the largest cash assistance welfare program, welfare rolls declined substantially, dropping by half within about five years. Employment rates among low-income adults also increased, and child poverty plummeted.

However, last summer the Obama Administration announced it would begin issuing waivers to the federal work requirement.

Today, the federal government operates roughly 80 means-tested welfare programs, and very few promote work. American Enterprise Institute scholar Charles Murray explained to Fox News that government welfare “is systematically undermining a civic culture of independence that was a great American treasure.”

Welfare should not stand in the way of self-sufficiency but should encourage freedom from government dependence, helping individuals achieve the true American dream

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We got to cut corporate welfare out of the budget too!!!

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The Moocher Index is a measure of which state has the highest level of welfare dependency!!!

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Obama’s welfare state creates dependency (be more prompt with tax return next year we almost ran out of welfare money)

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Thomas Sowell and Milton Friedman’s answer to the welfare problem in 1980 will still work today

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Milton Friedman had a solution to today’s welfare mentality!!!

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Welfare state may drag England down the tubes!!!!

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Milton Friedman did not favor free immigration with existing welfare state in USA

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We got to stop encouraging people to stay on welfare

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What does the welfare state do to people?

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Founders Fathers were against welfare state

Why are we spending more and more on welfare every year?  What would the Founding Fathers have to say about this if they were still here today? We will look at that in a little bit. We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back […]

Job training programs are ineffective and the private market place can do a better job of that anyway!!

Job training programs are ineffective and the private market place can do a better job of that anyway. They should be cut and when Washington tries to get involved it usually messes things up!!! Cronyism is the result when the government tries to reward money for these programs.

August 9, 2013 3:22PM

Federal Job Training Programs and Crony Capitalism

The Reason Foundation’s Adam Millsap and Anthony Randazzo have an op-ed up at RealClearPolicy.com that cites examples of how federal job training programs are used to favor particular commercial interests. A snippet: 

Crony capitalism is when private interests collude with government to acquire subsidies or economic benefits that give them an advantage in the marketplace. Many job-training programs, such as the “On the Job Training Program” (OJT), serve just this purpose.

In many cases, the OJT program provides subsidized job training for specific jobs in specific areas—because the funds are limited, only certain employers will get the money. For example, in 2009, the OJT program provided a 50 percent salary subsidy to train chemical composite technicians for Renegade Materials in Dayton, Ohio. The company and workers both benefited from the program, but the subsidy provided Renegade with an advantage over its competitors, who did not benefit from free taxpayer money.

Similarly, Canadian company Energuy built its U.S. headquarters in Sacramento, Calif., to be near an OJT program called JobLink. Energuy, which hires workers to evaluate the energy efficiency of home appliances, has been expanding in other parts of California as well, specifically targeting areas that have subsidized training. The company has become so dependent on the availability of training subsidies that, according to its president, Energuy has “actually had meetings where we’ve said we’ll only move forward if we can get a subsidized employee; otherwise we’ll have to wait until we’re financially ready.”

Sometimes job-training subsidies help a range of firms in a particular industry, as was the case with the $22 million used to help lobstermen in the Northeast improve their businesses with government-funded business-plan training in 2010. These subsidies favor people currently in business over those who might want to enter the industry.

Millsap and Randazzo also point out that job training programs are ineffective and that funding is allocated to the states haphazardly. They correctly note that alternatives exist in the private sector, which is where responsibility for training workers belongs. Over at Downsizing Government, a Cato essay on federal employment and training programs goes into deeper detail on many of the themes discussed by Millsap and Randazzo. 

Unfortunately, both Republicans and Democrats support the federal government continuing to stick its nose where it doesn’t belong. As is the case with pretty much every policy issue Washington (mis)handles, the two parties largely only differ on the details.

Related posts:

Cartoon from Dan Mitchell’s blog (Cronyism is hurting the economy)

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Open letter to President Obama (Part 380)

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We got to cut corporate welfare out of the budget too!!!

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Religious freedom include discussing creation in the classroom?

Obama is a spending addict (Cartoons)

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control.

Obama is a spending addict.

Let me start this post by stating that George W. Bush was a bigger spender than Barack Obama (though the numbers are somewhat distorted by TARP, which caused a big increase in the burden of spending during Bush’s last fiscal year and artificially dampened outlays in Obama’s first fiscal year since repayments from the banks counted as negative spending).

So I’m not trying to make a partisan point by sharing these cartoons. I don’t like it when Democrats increase the burden of government spending and I’m equally dismayed when Republicans engage in same type of profligacy.

That being said, I was a big dumbfounded when President Obama recently claimed that there’s not a spending problem in Washington.

We know that the United States has a huge long-run problem with deficits and debt according to both the Bank for International Settlements and the Organization for Economic Cooperation and Development.

We also know that tax revenues, measured as a share of GDP, will soon be above their post-World War II average and that the tax burden is expected to increase in coming decades.

So a person would have to be in serious denial to claim that spending isn’t a problem.

Which is the point Eric Allie makes in this cartoon.

Spending Problem Cartoon 1

And the point Robert Ariail makes in this cartoon.

Spending Problem Cartoon 2

Ditto for Bob Gorrell.

Spending Problem Cartoon 3

And Gary Varvel.

Spending Problem Cartoon 4

Last but not least, the great Michael Ramirez.

Spending Problem Cartoon 5.jpg

Gee, it’s almost like we’re seeing a pattern.

And if you like this spendaholic-in-denial theme, you can click here and here for further amusement.

P.S. Oh, by the way, if anybody’s actually interested in how to solve the spending problem (you know, the one that doesn’t exist), we do know the answer.

P.P.S. Remember when Obama claimed the private sector was doing fine? Well, here’s how cartoonists mocked him for that absurd comment.

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Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 2

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Great cartoon from Dan Mitchell’s blog on government moochers

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Gun Control cartoon hits the internet

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“You-Didn’t-Build-That” comment pictured in cartoons!!!

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Funny cartoon from Dan Mitchell’s blog on Greece

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Obama on creating jobs!!!!(Funny Cartoon)

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Get people off of government support and get them in the private market place!!!!(great cartoon too)

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2 cartoons illustrate the fate of socialism from the Cato Institute

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Cartoon demonstrates that guns deter criminals

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Taking on Ark Times bloggers on the issue of “gun control” (Part 2) “Did Hitler advocate gun control?”

On 1-31-13 I posted on the Arkansas Times Blog the following: I like the poster of the lady holding the rifle and next to her are these words: I am compensating for being smaller and weaker than more violent criminals. __________ Then I gave a link to this poster below: On 1-31-13 also I posted […]

We have to stop paying for South Korea’s defense because they are a wealthy ally and can defend themselves!!!

We have to stop paying for South Korea’s defense because they are a wealthy ally and can defend themselves!!!

August 9, 2013 3:07PM

Should South Korea Command Its Own Military?

The Korean War ended six decades ago. No peace treaty was signed, so the parties technically are still at war.  But no one wants to restart the conflict because everyone would lose.

Pyongyang’s system of monarchical communism, is a great mystery. But the more important question in Washington is, why is the U.S. still involved on the peninsula, threatening and threatened by the North?

America’s role started as an afterthought , with the United States and the Soviet Union dividing control of what was then a Japanese colony after Tokyo’s surrender in World War II. The Democratic People’s Republic of Korea (the North) invaded the Republic of Korea (the South) in 1950. The U.S. intervened, followed by China.

Three years later an armistice ended the fighting and the U.S. signed a defense treaty with the ROK, backed by a tripwire military presence along the Demilitarized Zone. Washington even ran the Combined Forces Command, possessing operational command of the South Korean military in both peace and war.

Today the balance on the peninsula has shifted dramatically. Seoul is prosperous and populous, as well as an important global player. The DPRK is politically isolated and an economic wreck. South Korea enjoys a 2:1 advantage in population, 40:1 advantage in economic strength, and overwhelming advantage in international support.

So why is America still defending the ROK? As I wrote in my latest article on American Spectator Online:

[T]world surely is not as dangerous as during the Cold War, when what Ronald Reagan called the “Evil Empire” occupied Eastern Europe and supported a plethora of Third World dictatorships around the globe. The global organizer is gone, leaving only a few disconnected imitators. While the DPRK continues to rely on energy and food aid from Beijing, the former is essentially alone, one of the reasons it maintains an oversize military.Still, the U.S. acts like the “main check against global rogues.” But it need not do so. America’s Asian and European allies are prosperous and populous; they can defend themselves against the few “rogues” in their neighborhoods. Washington continues to act as guardian out of a combination of ego and habit rather than necessity. No where is the power balance as lopsided as on the Korean peninsula.

It’s bad enough that the ROK hasn’t created an adequate deterrent capability. But that country doesn’t even command its own troops when it most matters: in wartime. Although Seoul has taken back peacetime command, it put off plans to take over wartime control in 2010 and now wants an indefinite delay in the new due date of 2015.

There are no insoluble technical issues to handing over that control. The real issue is political: South Koreans fear that the transfer might be followed by Washington stepping back militarily in other ways, as it should.

The ROK can defend itself. Washington is effectively bankrupt. There’s no reason not to ask South Koreans to work as hard to protect their nation as Americans work to defend it.

The easy first step is to insist that Seoul take on the normal responsibilities of a normal country and command its own forces in war as well as peace. Then the U.S. should develop an orderly plan to speedily turn full responsibility for the ROK’s security over to Seoul. Sixty years of international defense welfare is enough.

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